Leading organization transformation in PH

“If it ain’t broke, why fix it?” People’s initial reaction to change tends to be negative, no matter what change is introduced. They prefer to stay in their comfort zone or within the stable status quo. This makes organization transformation a difficult and challenging process.

What makes it tougher is the lack of local knowledge on how employee attitude toward change can be effectively managed. Most of the existing models were developed in the West, which as expected, do not reflect culturally nuanced norms, attitudes and behaviors of Filipino employees affected by change.

To determine factors that contribute to successful change in Philippine organizations, Dr. Regina Hechanova and Dr. Edna Franco spearheaded a multicase study of successful transformations in seven Filipino organizations from various industries. They identified four common success drivers that positively influence employee attitude toward transformation. These are change strategy, change management, organization culture, and transformative leadership.

Change strategy

Crafting change strategies that are long-term and that include all the stakeholders helps ensure buy-in of the planned transformation. It is also more effective to execute changes in phases, thus making the employees feel that the leaders consider their varying pace in adapting to change.

Change management

Effective change management takes into account three important dimensions: participation, communication, and composition of the change management team. In our culture, leaders are seen as patriarchs and Filipino employees look to them for direction. The challenge therefore is how leaders balance participation in decision-making. Confidence in their leadership must be maintained while making employees feel that their ideas are listened to. Participation and quality relationships are highly related. Change leaders are expected to engage employees in personal communication, which is highly desired in Filipino culture. Leaders who create an environment where people can freely express ideas and concerns as well as build quality relationships with employees have a bigger chance of stirring the hearts and minds of employees toward committing to change.

Four dimensions of organization culture were identified as necessary foundations for transformation: mission orientation, quality relationships, employee engagement, and innovation.

Mission orientation is associated with readiness for change. It includes the importance of workers knowing where the organization is headed. Quality of relationships becomes important since transformation takes place easier in an organization with an atmosphere that encourages positive relationships.

Employee engagement involves the Filipino values of malasakit and utang na loob. Engagement is seen on how employees show concern for the organization and are willing to go the extra mile to contribute to organization success. Lastly, a culture of innovation where employees are encouraged to explore new ideas creates an environment that is open to seeking and embracing change.

For change to be successful, it should come from the top. This stresses the importance of leadership as a critical driver for change. Effective change leaders are those who are able to establish personal relationships with employees and motivate them to change, which in essence means handholding with them as they journey toward transformation.

“Nothing is permanent, but change.” This statement rings true especially today, when every organization needs to constantly reinvent itself to survive. The challenge is to continually improve organizations—to lead them to transform so as not to cease being relevant.

(The authors are part of the Research Unit of the Ateneo Center for Organization Research and Development. The research findings cited above are published in the book “Rebirth and Reinvention,” edited by Dr. Regina Hechanova and Dr. Edna Franco. For details, visit www.ateneocord.org.ph  or call (632) 4266065 or (632)4266001 loc 5263.)